Calculate dollar denominated return on euro

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Reference no: EM131603986

The spot U.S. dollar-euro exchange rate one year ago was € 1 = $ 1.1055 and the current spot U.S. dollar-euro exchange rate is € 1 = $ 1.1398

(a) Calculate the dollar denominated return on the Euro over the last year and give an example where this would be relevant.

(b) Calculate the Euro denominated return on the dollar over the last year and give an example where this would be relevant.

Reference no: EM131603986

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